Two years after, Court orders CBN to account for assets seized from Ibru

A Federal High Court in Lagos has asked the Central Bank of Nigeria (CBN) to account for all assets forfeited to the Federal Government by former Chief Executive Officer of the now defunct Oceanic Bank Plc, Mrs. Cecilia Ibru.

Mrs Ibru, under a plea-bargain arrangement on October 6, 2010, pleaded guilty to charges bordering on economic crimes.

She was accordingly convicted by then Chief Judge of the Federal High Court, Justice Dan Abutu and sentenced to six months imprisonment per count.

Yesterday, Justice Mohammed Idris ordered the CBN to make public within 72 hours, “the total cash and value of properties recovered from Mrs Ibru; the whereabout of the money and properties recovered and what part of this cash and properties has been returned to Oceanic Bank and/or its shareholders.”

Justice Idris’ orders were contained in a judgment on a suit brought under the Freedom of Information (FOI) Act by a shareholder of the defunct bank and President, Progressive Shareholders Association, Boniface Okezie.

Okezie had, by a January 26 letter to the CBN Governor, sought information on what it cost the government to engage the law firms of Messrs Olaniwun Ajayi, LLP, and Kola Awodein & Co. in executing the banking reform initiated by the apex bank.

He went to court following the bank’s refusal to honour his request. Relying on the provisions of Section 25 of the FOI Act, Okezie urged the court to compel the CBN to provide him with detailed information as contained in the letter.

Justice Idris held that with regard to the request on the contractual agreement between the CBN and the law firms, the bank was not obligated under Section 16 (a) of the FOI Act to disclose such information.

He further held that Section 15 (1) (a) of the FOI Act allows public institution to refrain from disclosing information which could reasonably be expected to interfere with the contractual or other negotiations of a third party.

The judge, however, held that despite these provisions, any public institution to which request for the release of information was made under the FOI Act, wax under the obligation to respond to such request in writing indicating why, in the case of refusal, the request was refused.

He said: “Overall, I hold that the action succeeds in part,” the judge held, and subsequently ordered the apex bank to make available to the plaintiff, information regarding the total cash and properties recovered from Ibru, their where about and what portion of them had been returned to Oceanic bank or its shareholders.

Ibru, under the plea bargain arrangement with the Economic and Financial Crimes Commission (EFCC), pleaded guilty to an amended three count-charge in which she was accused of exceeding her approval limit by approving the grant of $20million to a company – Waves Project Nigeria Limited.

Other counts were that she failed to take all necessary steps to ensure that her bank’s balance sheet as at May, last year, gave a true and fair view of the state of affairs of the bank and that she granted N2 billion loan to a company – Petosan Farms Limited – without adequate security.

The court, upon her conviction, also ordered Ibru to forfeit all assets and property estimated at N191billion, listed in a settlement agreement signed by parties and filed before the court.

The forfeited assets are to be managed by a company owned by the Federal Government– Assets Management Corporation of Nigeria (AMCON).

Assets to be forfeited include about 82 houses (scattered across Nigeria, the United Kingdom and Dubai, United Arab Emirate), shares in 19 companies not listed in the Nigerian Stock Exchange and shares in 199 listed companies.